Free and Clear - Title transfer to a buyer who's paying via a third party lender - CA
09-20-2017, 01:02 PM
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Free and Clear - Title transfer to a buyer who's paying via a third party lender - CA
I've gathered interest of many in just 3 days of the listing post date for a single owner 2012 C63 AMG.
One buyer is looking to purchase the car at a considerably fair market price and was looking to finance his purchase through a third party lender. The vehicle is company owned (free and clear), and I have signing authority to release the title at my own will. The purchaser and I (seller) have not done a private party transaction with a third party lender before and I just want to cover the basis with your thought.
1. As required in CA, If the vehicle is after 4 years of age, I will need to provide a Certified Smog Check within 90 days of final sale
http://www.dmv.org/ca-california/buy...ling-a-car.php
2. The buyer must be qualified to purchase a loan contract and the car will likely be collateral for the term of the loan
3. Buyer and Lender must execute a Power of Attorney, consenting that the lender is allowed to act on behalf of purchasing the car for the buyer.
At this point I am unsure how to draft a bill of sale other than to say
The “Seller” _____(on Behalf of “XXX, Inc”) does herby certify that it currently holds title and all rights to such goods, and there are no known third party liens on this vehicle. This Bill-of-Sale contract states that the title of ownership, as well as all responsibilities, is being transferred to the “Buyer”______________ (on Behalf of “_________________________”) with or without a professional inspection, for the final price listed below. Goods are being sold and transferred “as-is” and the Buyer hereby certifies that the goods have been inspected and are acceptable at this time. Buyer is also legally aware and able to sign this contract, which was provided on the __ day of September, 2017 and will remain executable for three (3) days.
1. Vin Number
2. Make/Model
3. License Plate
4. Odometer
5. Sale Date
6. Final Sale Price
7. If applicable, non-refundable Deposit Amount
8. If applicable, Date of which Deposit has been received, Date of which exclusive option to execute the transaction is nullified
9. Contact (name address and number), what about drivers license?
10. Signature for Receipt of Deposit (Seller)/Issuance of Deposit (Buyer)
11. Signature for Receipt of Full Payment (Seller)/Issuance of Full Payment (Buyer)
Any input on the bill of sale?
Should I put an arbitration clause?
Furthermore, from a paperwork standpoint, I imagine that the title should be rightfully possessed by the lender until the loan obligation is paid in full (kind of like a lease works). Is this correct or will the Buyer be the title holder during the course of the loan?
Lastly, what do I need to ensure the lender and buyer are verified? a Certificate of Good standing? Joint Liability Waiver?
One buyer is looking to purchase the car at a considerably fair market price and was looking to finance his purchase through a third party lender. The vehicle is company owned (free and clear), and I have signing authority to release the title at my own will. The purchaser and I (seller) have not done a private party transaction with a third party lender before and I just want to cover the basis with your thought.
1. As required in CA, If the vehicle is after 4 years of age, I will need to provide a Certified Smog Check within 90 days of final sale
http://www.dmv.org/ca-california/buy...ling-a-car.php
2. The buyer must be qualified to purchase a loan contract and the car will likely be collateral for the term of the loan
3. Buyer and Lender must execute a Power of Attorney, consenting that the lender is allowed to act on behalf of purchasing the car for the buyer.
At this point I am unsure how to draft a bill of sale other than to say
The “Seller” _____(on Behalf of “XXX, Inc”) does herby certify that it currently holds title and all rights to such goods, and there are no known third party liens on this vehicle. This Bill-of-Sale contract states that the title of ownership, as well as all responsibilities, is being transferred to the “Buyer”______________ (on Behalf of “_________________________”) with or without a professional inspection, for the final price listed below. Goods are being sold and transferred “as-is” and the Buyer hereby certifies that the goods have been inspected and are acceptable at this time. Buyer is also legally aware and able to sign this contract, which was provided on the __ day of September, 2017 and will remain executable for three (3) days.
1. Vin Number
2. Make/Model
3. License Plate
4. Odometer
5. Sale Date
6. Final Sale Price
7. If applicable, non-refundable Deposit Amount
8. If applicable, Date of which Deposit has been received, Date of which exclusive option to execute the transaction is nullified
9. Contact (name address and number), what about drivers license?
10. Signature for Receipt of Deposit (Seller)/Issuance of Deposit (Buyer)
11. Signature for Receipt of Full Payment (Seller)/Issuance of Full Payment (Buyer)
Any input on the bill of sale?
Should I put an arbitration clause?
Furthermore, from a paperwork standpoint, I imagine that the title should be rightfully possessed by the lender until the loan obligation is paid in full (kind of like a lease works). Is this correct or will the Buyer be the title holder during the course of the loan?
Lastly, what do I need to ensure the lender and buyer are verified? a Certificate of Good standing? Joint Liability Waiver?
Last edited by 5Hundred; 09-20-2017 at 01:08 PM.
